What’s Reverse Life Insurance?

What’s Reverse Life Insurance?

Blog Article

What’s Reverse Life Insurance?

viaticals Life insurance policies, commonly viewed as a safety net for beneficiaries after the policyholder’s passing, offer more than meets the eye. For example, life insurance policies can be leveraged to cover expenses like medical bills or debt while the policyholder is alive.



Few people know they can sell their life insurance policy, but this is becoming a more common practice. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. For those needing a sudden influx of funds, this option could be both viable and lucrative.

Understanding How Reverse Life Insurance Functions

selling my life insurance There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. While both entail exchanging death benefits for cash, they differ in scope.

Reverse Life Insurance broadly encompasses options for turning life insurance policies into liquid assets. By contrast, Life Settlements focus on selling the policy for an amount between its surrender value and death benefit.

Would you like me to continue with the spintax for the remaining sections of the article?